Monday, January 21, 2008

ELEVEN INHERENT RULES OF CORPORATE BEHAVIOR

By Jerry Mander

The following list is an attempt to articulate the obligatory rules by which corporations operate. Some of the rules overlap, but taken together they help reveal why corporations behave as they do and how they have come to dominate their environment and the human beings within it.

The Profit Imperative: Profit is the ultimate measure of all corporate decisions. It takes precedence over community well-being, worker health, public health, peace, environmental preservation or national security. Corporations will even find ways to trade with national "enemies"—Libya, Iran, the former Soviet Union, Cuba—when public policy abhors it. The profit imperative and the growth imperative are the most fundamental corporate drives; together they represent the corporation's instinct to "live."

The Growth Imperative: Corporations live or die by whether they can sustain growth. On this depends relationships to investors, to the stock market, to banks and to public perception. The growth imperative also fuels the corporate desire to find and develop scarce resources in obscure parts of the world.

This effect is now clearly visible, as the world's few remaining pristine places are sacrificed to corporate production. The peoples who inhabit these resource-rich regions are similarly pressured to give up their traditional ways and climb on the wheel of production-consumption. Corporate planners consciously attempt to bring "less developed societies into the modem world" to create infrastructures for development, as well as new workers and new consumers. Corporations claim that they do this for altruistic reasons to raise the living standard—but corporations have no altruism.

Theoretically, privately held corporations—those owned by individuals or families—do not have the imperative to expand. In practice, however, their behavior is the same. Such privately held giants as Bechtel Corporation have shown no propensity to moderate growth.

Competition and Aggression: Corporations place every person in management in fierce competition with each other. Anyone interested in a corporate career must hone his or her ability to seize the moment. This applies to gaining an edge over another company or over a colleague within the company. As an employee, you are expected to be part of the "team," but you also must be ready to climb over your own colleagues.

Corporate ideology holds that competition improves worker incentive and corporate performances and therefore benefits society. Our society has accepted this premise utterly. Unfortunately, however, it also surfaces in personal relationships. Living by standards of competition and aggression on the job, human beings have few avenues to express softer, more personal feelings. (In politics, non-aggressive behavior is interpreted as weakness.)

Amorality: Not being human, corporations do not have morals or altruistic goals. So decisions that maybe antithetical to community goals or environmental health are made without misgivings. In fact, corporate executives praise "non-emotionality" as a basis for "objective" decision-making.

Corporations, however, seek to hide their amorality and attempt to act as if they were altruistic. Lately, there has been a concerted effort by American industry to appear concerned with environmental cleanup, community arts or drug programs. Corporate efforts that seem altruistic are really Public relations ploys or directly self-serving projects.

There has recently been a spurt of corporate advertising about how corporations work to clean the environment. A company that installs offshore oil rigs will run ads about how fish are thriving under the rigs. Logging companies known for their clearcutting practices will run millions of dollars' worth of ads about their "tree farms."

It is a fair rule of thumb that corporations tend to advertise the very qualities they do not have in order to allay negative public perceptions. When corporations say "we care," it is almost always in response to the widespread perception that they do not have feelings or morals.

If the benefits do not accrue, the altruistic pose is dropped. When Exxon realized that its cleanup of Alaskan shores was not easing the public rage about the oil spill, it simply dropped all pretense of altruism and ceased working.